US stocks opened higher on Thursday, June 11, with the S&P 500 rising 0.4% and the Nasdaq Composite climbing 0.5% shortly after the opening bell. The Dow Jones Industrial Average advanced 248 points, or 0.5%, as all three major indices started the session in positive territory. According to latest reports, the tech-heavy Nasdaq is recovering from its biggest weekly drop since April 2025, driven primarily by semiconductor companies. The Philadelphia Semiconductor Index soared 4.6% after tumbling 10% on Friday, with chip bellwethers including Advanced Micro Devices Inc. and Intel Corp. leading the gains. The semiconductor sector's strong performance came after last week's selloff was sparked by robust employment data that boosted expectations for tighter Federal Reserve policy.
Intel Corp. emerged as the biggest S&P 500 gainer, climbing 8.5% for its best day since May 8, following reports that Google will rely on it for more than 3 million specialized AI chips in 2028. As reported by The Information, Alphabet had tapped Intel to make 3 million in-house chips, while Nvidia was evaluating their technology. Micron Technology Inc. soared 8.7% while Broadcom Inc. rose 2.8%. The S&P 500 Information Technology Sector led the overall index with a 1.9% advance, while the iShares Semiconductor ETF surged nearly 6%. The semiconductor sector's strong performance came after last week's selloff was sparked by robust employment data that boosted expectations for tighter Federal Reserve policy. Intel also gained additional support after Bank of America upgraded the stock from underperform to buy, lifting shares about 5%.
Market sentiment was further complicated by escalating US-Iran tensions, with President Donald Trump announcing additional strikes on Iran. According to reports, Trump said in a post on Truth Social that the US will be attacking Iran "VERY HARD TONIGHT," adding that "At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets." This follows additional "self-defense strikes" carried out by US Central Command forces against Iran late Wednesday, according to a post on social media platform X, which said the operations were directed by Trump. West Texas Intermediate crude futures edged higher to around $89 a barrel after Trump's announcement, though the geopolitical developments provided additional support to the market recovery.
Sentiment was further buoyed by anticipation around SpaceX's upcoming debut on Friday, seen as a potential catalyst for broader AI-related investments. Some traders suggested recent volatility in chip stocks may reflect portfolio rotation ahead of the high-profile listing, expected to be the largest IPO on record at an estimated $1.8 trillion valuation. The anticipation around SpaceX's debut has created additional momentum for AI-related investments, with the company's upcoming public offering potentially serving as a significant catalyst for the broader technology sector. This development adds another layer of excitement to the current market recovery, particularly given the strong performance of semiconductor companies that are key beneficiaries of AI infrastructure demand.
Despite the headline gains, market breadth remained weak with more than 320 stocks declining in the S&P 500 while just over 180 rose, according to data compiled by Bloomberg. However, latest data shows advancing issues outnumbered decliners by a 1.76-to-1 ratio on the NYSE and by a 1.97-to-1 ratio on the Nasdaq. Four out of the 11 major S&P 500 indexes were in the green, with the S&P 500 posting 5 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 47 new highs and 57 new lows. The blue-chip Dow Jones Industrial Average ended 0.29% higher at 51,015.91 after rising earlier in the session. Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) ended Monday around 0.1% lower while the Invesco QQQ Trust (QQQ) gained 1.2%.
